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Introduction & Market Context
Viridien SA (VIRI) released its fourth quarter and full-year 2024 financial results presentation on March 27, 2025, highlighting significant improvements in profitability and cash flow generation despite relatively flat revenue. The company’s stock has experienced volatility since the presentation, currently trading at $49.58, down 6.46% as of April 29, 2025, after initially rising 5.76% following the earnings announcement.
The geoscience and earth data specialist delivered on its financial roadmap while operating in a stable exploration and production capital expenditure environment, with particularly strong performance in its Geoscience segment where order intake and backlog nearly doubled year-over-year.
Quarterly Performance Highlights
Viridien’s fourth quarter showed momentum across key financial metrics, with revenue reaching $339 million, up 6% year-over-year. More impressively, Q4 adjusted EBITDA jumped 30% to $157 million, while quarterly net cash flow was $22 million, down from $48 million in Q4 2023 due to vessel commitment contractual fees.
For the full year 2024, the company reported revenue of $1,117 million, slightly down 1% compared to 2023, but in line with guidance. Adjusted EBITDA for the year increased 14% to $455 million, despite absorbing $54 million in penalty fees from vessel commitments.
As shown in the following comprehensive financial overview:
The company’s net cash flow generation was particularly strong, reaching $56 million for the full year, a 71% increase from 2023, even after accounting for $75 million in contractual fees from vessel commitments. This performance underscores Viridien’s focus on operational efficiency and cash generation.
Segment Analysis
The Data, Digital & Earth (DDE) segment was the standout performer, with revenue increasing to $787 million for 2024 from $672 million in 2023. The segment’s adjusted EBITDA margin improved to 58% for the full year, reaching 63% in Q4 2024.
The following chart illustrates the DDE segment’s consistent improvement across key metrics:
Within DDE, the Geoscience business demonstrated exceptional performance with record high order intake, up 89% year-over-year, and year-end backlog increasing 90% to $351 million. Production per head continued to improve, reaching 343 in 2024 compared to 313 in 2023, indicating enhanced operational efficiency.
The Earth Data segment showed solid performance with investments backed by industry funding. The segment’s data library net book value as of December 31, 2024, was geographically diversified across multiple regions, with significant portions in Europe-Africa and North America.
The Earth Data key business indicators demonstrate the segment’s performance:
The Sensing & Monitoring segment experienced a transitional year with revenue decline following the delivery of mega crew systems in 2023. However, the company initiated a restructuring plan focused on cost reductions, operational performance, and working capital optimization. The segment showed strong revenue and profitability improvement in Q4, with adjusted segment EBITDA margin reaching 18%, up from 8% in Q4 2023.
Financial Position and Debt Reduction
Viridien continued to strengthen its balance sheet throughout 2024, with group liquidity amounting to $392 million, including $302 million in cash and $90 million in undrawn revolving credit facility. The company’s gross debt after IFRS 16 decreased to $1,223 million from $1,301 million in December 2023, while net debt reduced to $921 million from $974 million.
The company’s strong cash flow generation is illustrated in the following breakdown:
This improved financial position supports Viridien’s ongoing deleveraging strategy. The company completed its first tranche of $60 million debt buyback in 2024 and reduced the minimum cash required to run operations to $100 million.
Forward-Looking Statements and 2025 Outlook
Looking ahead to 2025, Viridien expects continued performance improvement in a stable E&P capital expenditure environment. The company has set a financial objective of generating approximately $100 million in net cash flow, representing a significant increase from the $56 million achieved in 2024.
The company’s financial roadmap for 2024-2025 outlines key priorities:
Viridien plans to complete its bond refinancing in 2025, with less than $1 billion in bonds to be issued, further supporting its deleveraging goals. The company will maintain its focus on cash flow generation while continuing to invest in growth opportunities across its segments, particularly in Geoscience where the strong backlog provides good visibility for 2025.
CEO Sophie Jokhia emphasized during the earnings call that "Our financial roadmap is clear, disciplined capital allocation, robust cash flow generation, and continued deleveraging," while noting a gradual pickup in exploration efforts, particularly among European international oil companies.
Despite the positive outlook, investors should be aware of potential risks including oversupply in the vessel market, potential volatility in the energy sector impacting exploration investments, and execution risks associated with the restructuring plans in the Sensing & Monitoring segment.
Full presentation:
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